Investa in conjunction with Oxford Properties, has launched a Build to Rent management platform for its Australian portfolio – expected to contain 5000 apartments.
The program, Indi, will provide investment, development and property management services for local users.
The partners have already committed to building 900 flats.
Their highest profile proposal – in Sydney’s Pitt Street (artist’s impression, top) – is due for completion in 15 months.
It will contain 234 dwellings, co-working spaces, a pool, gym, cinema, wellness facility, garden and children’s play area.
At Footscray, in Melbourne’s inner-west, a BTR complex with 702 units is set to open by mid-2024.
Oxford holds 10,000 North America dwellings; another 15,000 are in the works.
It is also co-owner of the United Kingdom’s Get Living, which owns 3000 operational units and plans to build 5000 more.
Build to Rent in Australia
A flurry of major developers – local and offshore – are seeking to construct Australian Build to Rent product.
Six months ago Greystar acquired a South Melbourne site with plans for 720 units in three towers.
Not long earlier, it acquired neighbouring South Yarra offices for a $400m village.
Mirvac has three BTR projects on the go in the Victorian capital – including at the old Convention Centre, on the banks of the Yarra River, in the CBD (story continues below).
Several other private companies have announced intentions to buy.
According to Invest and Oxford, if only just one per cent of Australian housing stock is transitioned to BTR, the opportunity is worth $74 billion.
Projects with between 250-1000 apartments: Investa, Oxford
“With a focus on Sydney and Melbourne, each Indi project will provide a strongly differentiated offering with high quality apartments, extensive yet tailored amenities and dedicated on-site service teams to provide residents with 24-hour first class service,” a statement said.
“Located close to major transport links and public amenities, each project will comprise between 250 to 1000 apartments to create community-oriented living,” it added.
“Our apartments will be purpose-built for rental and will incorporate contemporary design, high-quality finishes and flexible floorplans to meet a broad spectrum of residents’ needs,” according to Investa group executive, Real Estate Services and Business Operations, Sally Franklin.
“We have incorporated ‘Rent Different’ into our operating principles, as we are committed to delivering this at every touch point of a resident’s journey,” she said.
“Our residents will enjoy security of tenure through long leases of up to three years, a proactive maintenance program, pet-friendly policies, the ability to personalise apartments and sustainable design and operations”.
Colleague James Greener added “supported by strong macroeconomic tailwinds, continued population growth across younger renting cohorts, record high housing affordability constraints and a structural undersupply of high-quality and professionally managed residential product, the potential of the sector is high”.
“As Oxford has experienced across North America and the UK, there is a deep need and desire among renters for high quality, professionally managed apartments,” Oxford head of Australia, Alec Harper, said.
“Indi provides us with an opportunity to move the status quo of the current landlord and tenant dynamic in Australia, by replacing it with one where the owner is focused on service and providing an exceptional experience for residents”.